Here we go again with obnoxiously high amounts of AMC Stock failing to deliver in the newest report seen on Fintel.
Below is a screenshot from Fintel showing enormous numbers of AMC Stock Failing to deliver in the first half of June 2022. These numbers of Shares failing to deliver even seen as high as over 2.6 million shares seen on June 3, 2022.
Why is there such a high concentration of shares failing to deliver for AMC Stock? AMC retail investors have strongly suspected hedge funds of illegally naked short selling the meme stock for a while now. There is good reason and evidence that this could be the case. If hedge funds are in fact illegally naked short selling the stock this can partially explain why the AMC stock price has been driven down. The meme stock investors have been waiting for hedge funds to be held accountable for a long time. Even after many AMC “glitches “, along with probes and investigations by the SEC it still seems hedge funds are being let off the hook time and time again.
WHAT IS NAKED SHORT SELLING?
A regular short sale is when an investor sells borrowed shares and has agreed to buy the share back later (hopefully at a lower price) which ultimately would net the investor a profit. A naked short sale on the other hand is when an investor bets against a stock without actually borrowing the existing shares first.
Naked short selling is illegal because of its ability to artificially push down a stock’s price. Essentially short selling creates an environment where investors are not actually borrowing existing shares, but they’re still selling shorts — and as many as they want.
Look for yourself below and ask yourself the question: Is there anything nefarious going on with AMC Stock or not.
WHAT IS THE LONG-TERM OUTLOOK FOR SHARES FAILING TO DELIVER?
Eventually if a stock has persistently failed to deliver over a long period of time, the DTCC (Depository Trust & Clearing Corporation) puts the trade in an “obligations warehouse” — where it essentially just disappears. Unfortunately, the DTCC is owned by its users, and its users are primarily hedge funds — which as we know seems like it could be yet another conflict of interest. If the DTCC simply removes these unsettled trades and makes them disappear, what would stop hedge funds from continuing to do it again?
This should not change the short squeeze narrative though as always, AMC retail investors continue to buy and hold their AMC positions. The best way retail investors can help fight the injustices with the hedge funds is by spreading the word about the hedge funds and the possibility of illegal trading activity and buying and holding the stock. Apes believe it’s always a good time to buy AMC because the movement is only getting larger and stronger.